Boomers Pension Gravy Train Finally To Be Derailed

missbiggles1

Nick_C wrote: »

But scrapping the triple lock in favour of simple CPI index linking is not attacking pensions, it is preserving their current value. The triple lock has meant State Pensioners have been getting real increases in their income while other less generous state benefits have been cut.



True, but a pensioner is more likely to be living mortgage free and have investments than a worker. It seems unfair that two people with the same income should pay such vastly different rates of tax (and NICs).

It's important to encourage people to make their own provision for their old age, but I think we are currently being too generous to pensioners.

More likely, certainly but over one million pensioners are paying a mortgage in retirement and rent doesn't just stop when you get to a certain age.

Comfortably off people have investments, whether workers or pensioners - most don't.

(I think pensioners should pay NICs, at least at a reduced rate.)

ruggedtoast

StevieJ wrote: »

Surely any attack on pensions now will affect what Millennials receive down the line?

Millennials have no chance of receiving anything like what today's pensioners are getting, when they retire.

They will also have a working life that leaves them far poorer than Boomers at the end of their careers.

Millennials work longer hours for less money, in insecure employment the price of admission for which is £30k of student loan debt and a lifetime of private renting.

It is doubtful there will be any kind of non means tested state pension when today's grads retire in their 70s, let alone an NHS.

ruggedtoast

DiggerUK wrote: »

There were many in my generation who waged a political struggle to get what we worked for, paid for, and put by for.

My pension entitlements, savings and house weren't given to me. It's time this apolitical wingeing bunch of milenials got off their backsides and took up the cudgels of politics.

Then you could get back what working people are entitled to..._

Your non funded state pension and unearned house price inflation is indeed being given to you.

The thing boomers seem to forget is that the generations before them did absolutely everything for their futures. They fought two wars, built millions of houses, gave them free education, and provided a cradle to grave welfare state.

Unfortunately this appears to have engendered a mind set of entitlement in Boomers that has led to them pulling up the drawbridge on their own children.

Thrugelmir

Nick_C wrote: »

With inflation at 0% (and an inflation target of 2%) we could easily have increased VAT.

I fail to see the connection between the two.

True, but a pensioner is more likely to be living mortgage free and have investments than a worker.

Do you have evidence to support this assertion. Also why won't workers own their own homes.

while raising personal allowances is an excellent thing for the poor, it disproportionally benefits the better off. We probably need an intermediate tax rates from 20% to 40%.

It what way is it disportionate?

xylophone

It's important to encourage people to make their own provision for their old age, but I think we are currently being too generous to pensioners.

And how generous was the Thatcher government to pensioners when it abolished the link between pensions and earnings?

What would have happened if the link with earnings had remained?

If pensions had been linked to earnings, the basic state pension would be around £160 a week, rather than the £116 a single person receives. More than 12m people in the UK are over state pension age.

The article above (from 2015) indicates that had the link remained, the BSP would have been higher in 2015 than the current NSP.

The "triple link" is a catch up exercise?

Filo25

It seems a good time to get rid of the triple lock now anyway, there is still a lot of pressure on public spending which isn't really being spread equally at present, and with inflation set to rise significantly the loss of the 2.5% guarantee won't be felt as much in the short term, so there might be slightly less political resistance.

CLAPTON

ruggedtoast wrote: »

Your non funded state pension and unearned house price inflation is indeed being given to you.

The thing boomers seem to forget is that the generations before them did absolutely everything for their futures. They fought two wars, built millions of houses, gave them free education, and provided a cradle to grave welfare state.

Unfortunately this appears to have engendered a mind set of entitlement in Boomers that has led to them pulling up the drawbridge on their own children.

one wonders whether it is an evolutionary thing

maybe the specie has peaked with the war generation and is now declining steadily : no more entrepreneurship, no longer have the ability to build a house, no more ability find the way to the voting station etc.

so yes the millennial generation will probably revert to living in caves and listening to tales of past glories

lets face it, no-one from the war generation would vote for people like corbyn, mcdonnell, abbott etc

whattochoose

Wonder what effect this will have on the electorate, come the next election.
Aren't older people more likely to vote?

Thrugelmir

whattochoose wrote: »

Aren't older people more likely to vote?

What's the alternative? Simply continue to promise the unaffordable. Be an own goal for any political party that does attempt this route.

Castle

Nick_C wrote: »

A pensioner with a mix of incomes from savings and investments might have £22,000 a year but only pay £1,000 tax. A worker on £22,000 a year would be paying nearly £4K in tax and NICs, and then have to pay rent, pension contributions, fares to work, lunches out etc.

We need to stop giving special treatment to pensioners.

Even the new state pension is only £8,094 per year so were is this additional £14,000 a year going to come from?